Qualified pre-retirement survivor annuity and death benefit provisions

[Gary]

I would like a plan to provide that upon the death of a participant, the spouse (or elected beneficiary) could decide at the time of benefit distribution, what form to receive the pension (the death benefit is at least equal to the QPSA and fully subsidized).

For eg. the plan allows for a lump sum payment as an alternate option.

So if a participant were to decease while actively employed and the spouse were the benny, the plan would of course allow the benny to commence pension at time participant would have been elig for early ret (as QPSA), but could the plan allow the benny to choose an option after death (at the time of ben commence), eg. receive an equiv. lump sum at any date after death? So since the plan provides a death ben equal to full PVAB, could it be paid as lump sum at any date after death. Bottom line is that these provisions are more liberal than statutory requirements.

Thanks.

[david rigby]

I believe this is very common in small plans.